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UpstreamOnline.com: ONGC eyes Sakhalin LNG

By Upstream staff

India’s Oil & Natural Gas Corporation (ONGC) is keen on liquefying its share of gas from the Sakhalin 1 field in Russia’s far east and shipping it to India.

According to an Indian Oil Ministry official, ONGC is in talks to use Shell’s Sakhalin 2 liquefaction facility and the companies were likely to meet again on 31 July.

“We are keen on getting liquefied natural gas from Sakhalin 1. India needs LNG desperately. Shell has a liquefaction facility for Sakhalin 2 and we can use that,” said the official, who did not wish to be identified.

“We have had some discussions and will meet them again on 31 July.

“Piping the gas and selling it means just one consumer and we may not get the right price.”

ONGC holds a 20% share in Russia’s Sakhalin 1 project, which is operated by ExxonMobil.

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